Spotlight on New Hotels

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Malaysian hotels started collecting tourism tax

counting dollarsStarting from September 1st, Malaysia began imposing its tourism tax. The tax will be collected from all types of premises used as accommodation for tourists, such as registered hotels and inns. Hotels have begun claiming the RM10 nightly fee from foreign tourists lodging at their premises.

Malaysian Association of Hotels president Sam Cheah Swee Hee told The Star daily, “Not all hotel operators are ready. We will do it manually until the system is ready.”

Any hotel with five rooms or more is applicable for the tax regardless of their star rating.

Malaysian nationals who hold a MyKad or permanent residents with MyPR cards are exempted from the tax. The tax is not included in the reservation cost. It will be collected by the accommodation premises.

The tourism tax introduced this year was initially planned for roll out from August 1 and taxation was originally meant to cover Malaysians staying at hotels as well.

The scheme was later reviewed, delayed and changed to only foreign tourists at a flat charge of RM10 (approx. US$2.3 or €2) a night following public uproar.

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